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Pepperstone claims that there are five reasons why automated trading is the way to go. Let's find out all about it.
Automated or algorithmic trading is basically a trading system that uses a computer program to execute trades on your behalf based on a set of predefined rules. You can use any strategy and create your own scenario for future trades. The software would monitor the markets and notify you when a trading opportunity is identified.
Pepperstone is one of the top brokers that offers several handy tools to execute your trades automatically based on either existing or new trading scenarios. As a matter of fact, a large number of daily transactions in this broker actually take place using this system.
The broker claims that there are five reasons why you should try automated trading, namely:
- Minimize emotions: Automated trading can help you minimize emotions while trading by executing the trade according to the predefined plan, regardless of the circumstances.
- Backtesting: You can test multiple strategies at the same time using different robots across platforms.
- Improved trading speed: The software can execute trades as soon as all the criteria are fulfilled, making the process faster and more effective compared to manual trading.
- Save time: There's no need to stare in front of the computer for hours to find trading opportunities because the software will monitor the markets and execute the trade for you.
- Promising future: Automated trading is a growing field within the trading world, so we might see many new developments in the future.
The broker even prepared a dedicated video to explain the matter:
In this article, we'll take a deeper look into those factors and see whether automated trading can really improve your trading journey.
1. Minimize Emotions
One of the things that you should avoid is trading under emotions. Traders can get easily overwhelmed by fear, euphoria, panic, greed, and many other feelings which may lead to irrational decisions and significant capital loss. While having emotions is totally normal for humans, it can affect your trade results if you can't control them.
There are some methods that you can do to manage your emotions, such as meditating, journaling, etc. However, it might take a long time before you can fully control your emotions while trading. This is what makes automated trading a great solution for any trader.
Automated trading can help traders to keep their emotions in check when making trades. The algorithm would execute your orders according to a predefined plan, regardless of the circumstances. This means, there will be no impulsive actions or self-sabotage. As a result, you can be sure that your trades are carried the way they're supposed to.
2. Backtesting
Automated trading can ensure that every rule in the strategy is rightly followed. This can help you test the efficacy of your strategy and understand the markets based on historical data. Aside from that, Pepperstone allows you to look at multiple possible outcomes from several robots across platforms, further confirming the strength of your strategy under certain market conditions.
Just keep in mind that the computer is the main system driver here. A machine can't make guesses or changes the plan on the spot, so be sure to check the trading scenario before activating it.
See Also:
3. Improved Trading Speed
Automated trading can generate more money because a computer is way faster in operation than a normal human. Once the rules are all fulfilled, the system will immediately execute the trade, along with the profit targets and stop losses. Thus, automated trading can capitalize on the market more effectively than manual trading.
It is worth noting that most financial markets move very fast in real time, so traders can easily lose trading opportunities. This is why getting in and out of the markets quickly is a great advantage that can make a huge difference in the trading result. Automated trading can prevent that from happening and minimize human errors.
4. Reduced Time
Every trader knows that making money from trading is not easy. It takes a lot of time and dedication to formulate a powerful trading strategy and analyze the markets. However, this is not the case with automated trading. The system is designed to save your time and make your job easier, making it a great choice for everyone.
All you need to do is lay down the parameters for your future plans and let the system do the trading for you. You can even choose from existing strategies on the platform instead of making a new one. Once the plan is checked and optimized, you simply need to monitor your positions every once in a while.
5. Promising Future
Automated trading is a fast-growing segment in the trading world at the moment. We keep seeing new updates and innovations everywhere, further confirming the relevance of automated trading in the future. As a result, those who have just started their algorithmic journey in Pepperstone can get a chance to spend less time familiarizing themselves with the system and gain higher potential profits.
Pepperstone was founded in 2010 by a team of experienced traders with a shared commitment to improve the world of online trading. Based in Melbourne, Australia, they grew to become one of the largest forex brokers in the world. If traders want to find a broker that provides low spreads, fast execution, and award-winning support, then the answer is Pepperstone.
Pepperstone has a strong legality guarantee because it has been licensed by the Australian regulator ASIC and FCA. Traders' funds can be deposited in segregated accounts at top Australian banks, one of which is the National Australia Bank (NAB). Therefore, the safety of funds is not a concern if a trader chooses to open an account in Pepperstone.
They succeeded in collaborating with 23 top banks to bring Bid to investors instantly via optical fiber. This allows all orders to be executed 100 percent automatically with low latency up to 0.05 milliseconds, without dealing desk intervention and requotes, as well as with super low trading costs.
Trusted by over 73,000 traders around the world, Pepperstone processes an average of USD12.55 billion of trading volumes every day. Because of that, they have many awards such as:
- The Best Global Forex ECN Broker 2019 and Best Forex Trading Support-Europe
- Best Australian Broker and Best Trading Platform 2018 by Compareforexbrokers.com
- Best Forex ECN Broker, Best Forex Trading Support, and Best Forex Trading Conditions by UK Forex Awards 2018
With the many rewards gained, Pepperstone hopes to attract more and more traders from all over the world. The rising performance of Pepperstone is not only due to the super-tight spreads and fast execution that it provides, but also because many traders are interested in trading with deposits in currencies other than US Dollars.
For this reason, Pepperstone is one of the most market-responsive brokers because it is willing to accept deposits in 10 currencies, which include AUD, USD, EUR, CAD, GBP, CHF, JPY, NZD, SGD, and HKD.
Trading in Pepperstone would allow traders to choose between 11 trading platforms: MT4 for desktop, MT4 Mac, MT4 iPhone, MT4 Android, MT4 iPad/Tablet, MT5, WebTrader, cTrader WebTrader, cTrader cAlgo, and cTrader Mobile. The choice of trading platforms may seem confusing to novice traders, but actually, it is very useful because it has fast execution.
When trading forex, traders can enjoy raw spreads from 0.0 pips on Razor accounts, over 61 currency pairs, and commission-free account funding on a wide range of deposit options. In addition to currency pairs, Pepperstone provides many types of trading instruments, including CFDs for indices and shares, commodities, and cryptocurrencies.
Instruments in commodity trading are pretty much diversified. Not only metal, gold, and silver, but traders can also trade with soft commodities such as cotton, sugar, coffee, cocoa, and orange juice. Pepperstone also provides trading on energy (oil and gas).
There are two types of accounts provided by Pepperstone, namely Razor accounts, and Standard accounts. If you area beginner, it is recommended to choose a Standard account with an average EUR/USD spread of 1.0-1.3 pips and free commission.
Those with particular trading styles such as scalpers and algorithmic traders may enjoy the lower cost setup traditionally seen in a Razor account, with a commission from AUD7 round turn of 100k traded. You can start trading with a minimum lot of 0.01 (micro) and 1:400 leverage.
As a Pepperstone client, a trader can fund and withdraw with alternative methods including Visa, Mastercard, POLi internet banking, bank transfer, BPay, PayPal, Neteller, Skrill, and Union Pay.
If you are new to trading or looking to practice your trading strategies in a risk-free environment, you can create Demo Account in Pepperstone. But if you are an experienced trader or prefer to learn by doing, Pepperstone provides a Live Account that allows you to trade with live executions and pricing.
Traders can also follow and copy strategies from popular traders using third-party services while learning how to improve their trading abilities. Pepperstone has partnered with a range of social trading platforms that traders can choose from, such as Myfxbook, ZuluTrade, Mirror Trader, MetaTrader signals, and Duplitrade.
Final Thoughts
In conclusion, Pepperstone's automated trading system offers a series of benefits that may not be found in other trading strategies. It can help you achieve your goals and generate more money without having to spend most of your time in front of the computer. However, it is important to understand that while the system is attractive, you must approach it with care and full awareness of the risks.
Please note that successful automated trading needs a strong trading plan. The system will execute your trades based on the plan that you set up beforehand, so at the end of the day, the success of your trade still depends on you. Make sure that you know what you're doing before risking your money, regardless of the trading method that you use.
Pepperstone is an award-winning broker offering various trading instruments including forex, CFD, and crypto. This Australian broker is regulated by the Australian Securities and Investments Commission (ASIC).
19 Comments
Nanda
Jun 28 2023
This broker sounds good, but is it the best one compared to other brokers in the market? Sorry, I'm just a newbie so I don't know much about brokers yet. I also heard that automated trading is good for beginners, but I'm not sure if that's true because apparently you need to set up your own plan. I thought you just need to invest some money and let the software do the rest. Now I'm not so sure anymore. Is there a way to test the system for a few days at least?
Lexy
Jun 29 2023
I live in the UK and Pepperstone is very popular here. The broker has been around for more than 10 years I believe, and it remains one of the most popular brokers in the world, so I think that says enough about its reputation in the trading world. However, if you ask me whether the broker's the best option out there or not, then I'm not entirely sure because it all goes back to your preferences. All I can say is that I've been using Pepperstone for over a year now and I'm very satisfied with their service. The pricing is undoubtedly competitive compared to other brokers here and their mobile trading app is really good as well. If you are interested, just try their demo account! I reckon most beginners need that in order to find the right one.
Lillyana
Jun 30 2023
It seems that no one answered your second question yet, so let me enlighten you a bit. Automated trading is often said to be suitable for beginners because it doesn't take much effort and time. There is actually an option to use existing strategies made by other traders on the platform, instead of creating your own. HOWEVER, this can be quite risky if the strategy hasn't been tested.
Most trading platforms or brokers typically offer demo accounts, so you can test the strategy before using it. Please know that this is important, no matter if you use your own or other trader's plan.
Sasha
Jun 28 2023
What a coincidence! I just tried automated trading a few days ago and honestly it was a very interesting experience. I used to be sitting in front of my computer for hours just analyzing the markets, but now I have some spare time that I can use to study. I also like modify my trading strategy here and there to improve its profitability.
Right now I'm using MT4 smart trader tools to automate my trades. It offers some pretty cool EA tools there that definitely make my life better now. I'm wondering if it's the best software to use though for automated trading. What do you guys use to automate your trades?
Josh
Jun 29 2023
Hey I'm happy to hear that you're doing great. Robot trading is certainly awesome, even for complete beginners. As far as I know, Pepperstone offers several software for automated trading aside from MT4 smart trader tools, such as Capitalise.ai, cTrader automate, and API trading. I personally would recommend cTrader because it's so easy to use. You can backtest your strategy any time you want and even build custom indicators using the famous C# language. If you're into margin trading, try using the cTrader Automate.API.
Boris
Jul 17 2023
Is it necessary for us to become proficient in machine language in order to fully utilize the capacity of EA trading? Considering the benefits offered by Pepperstone's automated trading system and its potential to generate profits while minimizing screen time, it's crucial to approach it with caution and a thorough understanding of the associated risks.
However, here's the question: Do we need to delve into the complexities of machine language programming to optimize the capabilities of EA trading? Is it essential to invest time and effort into mastering the intricacies of the system, or can we achieve success by focusing on developing a strong trading plan and making informed decisions?
Devan
Jul 19 2023
No worries, mate! Here's the deal: You don't have to become a machine language pro to make the most of EA trading. While Pepperstone's automated trading system offers some cool benefits, understanding complex programming isn't a must.
Instead, focus on developing a strong trading plan and making informed decisions based on market trends. By keeping an eye on market analysis and following your strategy, you can still achieve success without diving into technical programming stuff.
Remember, mate, success in EA trading comes from making smart decisions, not from being a coding guru. So, keep it simple, stick to your plan, and stay informed. That's the key to rocking it in the world of automated trading!
Brandon
Jul 17 2023
Just being curious here, I mean can beginners dive into the world of automated trading (EA trading), where computer programs execute trades based on predefined rules? I've come across Pepperstone, one of the top brokers offering tools for automatic trade execution based on existing or customized scenarios. It seems like a popular option, with a significant number of daily transactions happening through this system. But the big question is, can beginners effectively navigate the complexities of EA trading and make the most of the tools and features provided? Is it feasible for newcomers to dive into automated trading, or should they focus on more traditional approaches? Your insights on this would be much appreciated!
Paul
Jul 18 2023
Hey! In my opinion, it's a bit of a mixed bag, my friend. On one hand, automated trading can be a game-changer, allowing you to execute trades without being glued to the screen. You can set your own rules, let the computer monitor the markets, and take action when trading opportunities arise. It sounds awesome, right?
But here's the kicker: EA trading does come with its challenges. As a beginner, understanding and creating effective trading strategies can be a steep learning curve. It requires a solid understanding of technical analysis, market dynamics, and the ability to fine-tune your predefined rules.
That being said, it's not impossible for newcomers to dive into automated trading. The key is to approach it with the right mindset and take the time to educate yourself. Start small, experiment with different strategies, and gradually build your confidence
Sammy
Jul 19 2023
Hold up, mate! I've got a slightly different take on this one. So, we're talking about automated trading (EA trading) and how beginners can jump on board, right? Well, here's the deal: while it may seem tempting, I reckon beginners should proceed with caution when it comes to this stuff.
Sure, Pepperstone offers some nifty tools for automatic trade execution, and it seems like heaps of traders are getting in on the action. But let's be real, mate. EA trading can be a bit of a wild ride, even for seasoned traders. It's like trying to ride a kangaroo before you've even learned to hop!
As a newbie, wrapping your head around the complexities of creating and understanding trading strategies can be a real head-scratcher. It's like trying to decipher Aussie slang without a translator. Trust me, it ain't easy.
Instead, I reckon it's wise for beginners to stick to more traditional trading approaches at first. Get a feel for the market, hone your skills, and build up that trading mojo. It's like learning to cook up a mean barbie before you start experimenting with fancy recipes.
Once you've got a solid foundation, then you can dip your toe into the world of automated trading. Take it slow, test out different strategies, and see if it's your cup of tea. Just remember, Rome wasn't built in a day, and neither is a successful trading career.
Chairul
Jul 27 2023
Do we need a strong computer to do EA trading? I'm interested in automated or algorithmic trading, where a computer program executes trades based on predefined rules. Since the software would be monitoring the markets and executing trades on my behalf, I want to make sure my computer can handle the workload. Can I use any computer, or does it need to be powerful to run the automated trading system smoothly? Also, considering that a large number of daily transactions on Pepperstone are done using this system, would a regular computer be sufficient for EA trading, or do I need a high-performance setup? Thanks for shedding light on this!
Samuel
Jul 28 2023
You don't necessarily need a super powerful computer for EA trading, but having a decent setup can be helpful. Since automated trading involves running a computer program to execute trades and monitor the markets, a computer with reasonable processing power and memory should be sufficient. It doesn't have to be top-of-the-line, but make sure it meets the basic requirements for running trading software smoothly.
A regular computer with a stable internet connection should work well for most EA trading activities. However, if you plan to run multiple EAs or use complex trading strategies that require heavy processing, a slightly more robust computer might be beneficial.
As for Pepperstone, since a large number of daily transactions are executed using their automated trading system, their platform is likely optimized to handle a significant amount of trading activity. So, as long as your computer meets the basic requirements, you should be able to participate in EA trading with Pepperstone without any major issues.
Chena
Jul 27 2023
Just want to make sure things in here! So, can we create our own EA trading system in Pepperstone? I'm interested in automated or algorithmic trading, where a computer program executes trades based on predefined rules. I want to use my own trading strategy and scenarios for future trades. Does Pepperstone provide tools that allow us to implement our custom trading strategies and execute trades automatically? I've heard that a significant number of daily transactions on this broker are done through automated trading systems, so I'm curious to know more about how I can utilize this feature. Thank you for providing further insights!
Choky
Jul 28 2023
Yes, you can create your own EA trading system in Pepperstone. Pepperstone offers tools and support for automated or algorithmic trading, allowing you to execute trades based on your custom trading strategies and predefined rules. With automated trading, you can use your own scenarios for future trades and let the computer program monitor the markets for trading opportunities on your behalf.
Pepperstone provides a range of options to facilitate automated trading, including the use of Expert Advisors (EAs) in the MetaTrader platform. Expert Advisors are custom programs that you can develop or import to the platform to automate your trading strategies. They can analyze the market, identify potential entry and exit points, and execute trades according to your predefined rules.
The popularity of automated trading is evident at Pepperstone, where a significant number of daily transactions are executed through this system. So, if you're interested in exploring automated trading and developing your own EA trading system, Pepperstone provides the necessary tools and resources to support your trading journey
Leon
Jul 29 2023
Hey there! Based on what I read in this article, it looks like Pepperstone has got some cool features for EA trading. You can use their tools to create your own custom trading strategies and let the computer do the heavy lifting for you. They call it automated or algorithmic trading, fancy words for "letting the program trade for you." So, you can set up your EAs to analyze the market and find trading opportunities based on your rules. And guess what? They've got features to track your EA trading performance too! That means you can keep an eye on how well your automated strategies are doing and make tweaks if needed. Sounds like a handy way to trade smarter with less stress!
Jacky
Nov 21 2023
It's mentioned that automated trading can act as an emotional buffer for traders by executing orders based on a predefined plan, eliminating impulsive actions or self-sabotage. Does it genuinely provide this benefit?
Now, turning to the broader question of the usefulness of automated trading, especially for professionals, is it a valuable tool in their arsenal? As a beginner, it makes sense to rely on tools to understand the market and make informed decisions. But for seasoned pros, is there a necessity for the same tools, or do they operate differently given their experience and expertise?
John
Nov 24 2023
Regarding automated trading, it does offer the advantage of keeping emotions in check. The algorithm follows a set plan, preventing impulsive moves or self-sabotage. It can be a helpful tool, especially for beginners who are still getting the hang of things. For the example, let's say the market takes a sudden nosedive. Without an automated system, emotions might kick in, and you could be tempted to panic-sell to avoid losses. However, your automated tool stays cool, calm, and collected.
Now, for the big question about whether professionals use automated trading – the answer is a bit nuanced. While beginners might heavily rely on such tools, pros often develop their strategies over time. They might not need the same training wheels, so to speak. However, some seasoned traders do incorporate automated elements into their approach, tweaking and fine-tuning them to complement their expertise.
In a nutshell, it's not a one-size-fits-all deal. Whether you're a beginner or a pro, the key is finding what works best for your trading style and adapting your tools accordingly. Automated trading can be a handy sidekick, but it's not the only path to success.
Sonny Lestari
Mar 26 2024
Is it true that automated trading is becoming increasingly popular? The article highlights that automated trading is a rapidly expanding sector within the trading industry. Continuous updates and innovations are reinforcing the importance of automated trading in the future.
What technologies or expertise contribute to the continuous improvement of automated trading? In my experience, automated trading has garnered a negative reputation in my country due to frequent occurrences of scams. However, what advancements or knowledge make automated trading increasingly reliable over time?
Charlie T
Mar 29 2024
Let me answer your doubt. I mean, it is really based on my thought about the Automated trading. So, wether you agree or not, I think it is yours to answer it. So, Automated trading, where computers do the buying and selling instead of humans, is totally becoming a big deal in the financial world. It's growing fast, mainly because of all the cool new tech and skills making it better and better.
Think of it like this:
Fancy Trading Strategies: People are coming up with super smart ways for computers to make trades. They use tons of data and math to figure out the best times to buy and sell stuff.
Speedy Trading: There's this thing called high-frequency trading, where computers make lightning-fast trades to take advantage of tiny differences in prices. It's like racing against time to make money.
Smart Computers: Computers are getting smarter with machine learning and AI. They can learn from past trades and make better predictions about what to do next.
Keeping Risk in Check: There are tools to make sure things don't go haywire. These tools watch out for risky situations and make adjustments to keep things under control.
Playing by the Rules: Governments are getting serious about making sure automated trading follows the rules. They're putting in place guidelines to keep things fair and stop any sneaky stuff.
Staying Safe Online: With everything happening online, it's important to keep things secure. There are measures in place to protect against hackers and keep your money safe.
Even though some folks worry about scams, more transparency and rules are making automated trading systems more trustworthy. So, it's all about making sure the tech works for everyone and not just a few big players.